Business rates are changing. Is your business ready?
With major legislative reforms, new multipliers, and a full revaluation taking effect from April 2026, early action is essential to avoid unnecessary costs and secure potential savings.
Below is a summary of the key developments and how our specialist team at Aitchison Raffety can support you.
Key Deadlines for the 2023 Rating List
- The opportunity to challenge 2023 Rateable Values (RVs) is closing:
- Proposals must be submitted by 31 March 2026
- Significant RV movements are anticipated from 1 April 2026
- Submissions made before April 2026 may benefit from downward adjustments following the revaluation.
- Missed deadlines = missed savings
If your 2023 valuations haven’t been reviewed, now is the time.
Empty Property Savings – A Commonly Overlooked Opportunity
Refurbishment or fit-out works can result in substantial savings, and this can be applied retrospectively back to 1 April 2023.
- Appeal deadline: 31 March 2026
- Example: Six months of building works = six months of £0 business rates
- Many landlords and occupiers are still unaware of this benefit
These savings can be substantial for high-value properties and/or long refurbishment periods.
2026 Draft List – What’s Changing?
The Valuation Office Agency (VOA) has released the 2026 draft list, showing considerable increases across several sectors:
- Retail: +10%
- Industrial: 21%
- Office: 14%
- Hotels: 76%
All commercial property will be revalued from 1 April 2026, and budgets will need to reflect these shifts.
Transitional Relief: Protecting You from Sharp Increases
To help manage changes in business rates after revaluation, Transitional Relief limits how much your bill can rise each year. Depending on your property size, increases in your rates bill are capped between 5% and 30%, allowing them to adjust year on year.
For properties with the largest increases in Rateable Value (RV), reducing your 2023 RV now is the best way to secure savings from April 2026. A lower 2023 RV reduces your base liability, which is used to calculate future increases—meaning your capped rise for the 2026 list starts from a lower point.
If you are concerned about how much your 2026 RV has increased, a good place to start is by reviewing your 2023 RV.
Legislative Changes – New Multipliers
New business rates multipliers will replace existing reliefs from April 2026. This introduces additional complexity, but also opportunities for those who plan ahead.
Retail Hospitality Leisure (RHL) Relief (currently -40%) is to be abolished, and replaced with permanently lower RHL multipliers.
2025/26
- Small Business Multiplier: 49.9p
- Standard Multiplier: 55.5p
2026/27
- Small Business RHL: 38.2p
- Small Business Non-Domestic: 43.2p
- Standard RHL: 43.0p
- Standard Non-Domestic: 48.0p
- High-Value Non-Domestic: 50.8p
More tiers mean more “cliff edges” – where small Rateable Value (RV) shifts can significantly impact rates bills.
Sectors Expected to See the Greatest Change
These changes will affect all sectors, with some more likely to benefit more than others under the proposed changes:
- Potential Winners: Multi-site RHL businesses, particularly RVs under £500k.
- Potentially worse-off: Large industrial sites, high-value (£500K+) RHL properties, single site RHL businesses, and hotels
Understanding your exposure is essential.
How we can help you
Our team of business rates specialists can support you in navigating these changes:
- Submitting 2023 list appeals before the 1 April 2026 deadline
- Reviewing 2026 draft valuations to identify risks and savings
- Developing a tailored rates strategy and forward planning
- Providing forecasting and scenario modelling for your portfolio
- Identifying and securing reliefs, including empty property and refurbishment allowances
For further information please get in touch with the team, either call us on 020 7022 2391 or fill out our contact us form and we’ll get back to you as soon as possible.